<h1>Rupee slips 2 paise to 88.65/USD; regulators eye central bank powers, bank FX conduct, market-abuse risks</h1> The report describes a 2-paise depreciation of the rupee to 88.65 per US dollar, attributing movement to a stronger dollar, rising crude prices, weak domestic equities, and foreign institutional investor outflows; state-owned bank dollar sales and potential central bank intervention are noted as mitigating factors. Legally relevant issues include foreign exchange market regulation, potential intervention authority of the central bank, disclosure and conduct obligations for state-run banks in FX operations, and market-abuse or insider trading risks amid volatile currency and equity flows. Regulatory scrutiny of cross-border capital flows and importer hedging practices may increase.